Iraqi News Wednesday AM 4-14-21
Iraqi News Wednesday AM 4-14-21
TLM724 Administrator BondLady’s Corner
The Decision To Devalue The Currency Between The Data And The Problems
Wednesday April 14, 2021 86 Baghdad: Hussein Thahab
The Iraqi Media Network Center for Strategic Studies and Research organized an open dialogue seminar bearing the slogan “The Dinar, the Dollar, and the Challenges of the Economy”. It was characterized by a frank presentation in the presence of economists in the public and private sectors. Timing of the decision.
Deputy Governor of the Central Bank, Ihssan Al-Shamran, said: “The issue of devaluation of the national currency has a big difference in viewpoints, and this conflict is between two issues, the first is the citizen’s interest and the citizen’s low purchasing power, due to the decision to reduce by 22 percent, while the second issue is the interest of the national economy, which Adopted by the Central and the Ministry of Finance.
Work and production
Al-Shamran pointed out that «the Iraqi market is full of foreign goods, and the reduction decision came to encourage the national product, and to rely on tools, including the decision to reduce, which encourages the agricultural sectors first and the industrial sectors secondly to work and produce, and that the decision came out of the primacy of the national interest over the public interest. Indicating that «the local market is affected and stopped, but it will return to the rise».
He emphasized that "the International Monetary Fund advised that the exchange rate be 1600 dinars against the dollar."
The identity of the economy
The head of the Board of Trustees of the Iraqi Media Network, Jaafar Alwanan, pointed out that «the Iraqi economy suffers from the problem of not having a special identity, and this makes the visions of the labor market blurry», describing «the large jumps in the exchange rate are incorrect, and that the change will eliminate the presence of a middle class in society, and be Either poor or rich, and that the economy must be employed to serve the country and the citizen, and the next requires that we know how to create an identity for the economy? ».
And the importance of "giving economists the opportunity to participate in economic decision-making, which activates investment and industrial and agricultural production, and takes care of preserving the family economy with limited income."
State Treasury
Economic advisor Hazem Hadi Al-Saadi said: “The economic decision that has an impact on the life of society must be studied well from all sides,” indicating that “the decision to reduce the currency came with great positive results, as it contributed to raising the reserves of the Central Bank of Iraq, and achieved An increase to the state treasury by 10 trillion, and it will contribute to providing cash to the Ministry of Finance.
Al-Saadi said that "from an economic point of view, it will contribute significantly to revitalizing the private sector and reduce poverty rates."
reaction
Adviser to the Institute for Economic Reform d. Hussein Al-Khaqani stated that "the decision was not wrong and aimed at achieving a better situation. Nevertheless, there were voices calling for the return of the old price, but it would have been more appropriate to gradually devalue the currency," noting that "the 22 percent reduction caused a reaction within the local market." "It led to a recession due to high prices, especially as it will help protect the national product and strengthen the industrial base."
Fragility of the economy
The industrial consultant Amer Al-Jawahry stated that it is "better for the concerned institutions to discuss such a decision with the private sector, experts and those concerned in economic affairs, and this requires that it be in all economic decisions, and that the repercussions of the economic decision revealed the fragility of the economic situation in the country", calling for "Work to find effective economic, industrial, agricultural and tourism initiatives that work in a real way to activate the national economy."
The real value
The industrial expert, Abdul Hussein Al-Shammari, said that “the decision to reduce the value of the dinar reflects the real value of the national currency, and after this procedure we have to go to support the citizen, especially on the issue of the ration card, and it is preferable to spend money on the citizen, to go to the local market and buy what he needs, This removes the card from all forms of corruption ».
He pointed out that the decision contributed to encouraging the start of the implementation of industrial projects in the various regions of the country, and here it is necessary to benefit from international experiences by granting industrial and agricultural dollars and to be sold at subsidized prices for this segment, to encourage the establishment of productive projects in the industrial and agricultural sectors, and that this coincides with Establishing strategic industrial zones that support production trends.
National product
Economist Abd al-Rahman al-Ashikhli described the decision as correct, but the country does not have an integrated economic base that harmonizes with such a decision and promotes production, and protects the national product from any external competition. We can say academically that the decision is correct, but in reality it is not correct ».
He pointed out that "the currency auction returned strongly and touched during the last two days the barrier of 190 million dollars in sales, and may reach 300 million during the coming period."
Negative effects
An advisor in the office of the Prime Minister, Nuri Al-Enezi, said, “He asked what the decision to devalue the currency to the citizen achieved?
Although the reduction is required for years, provided that it is conditional on ensuring food and drug security, and there is no complication in the issue of securing food and medicine, although their allocation is not large and secure, as the ration card is allocated 6 billion dollars and medicine is 2 billion dollars annually, and here it is necessary. The work is towards securing food and medicine, and then moving towards the reduction decision, which should not leave negative impacts on the citizen’s life.
The Chinese experience
Head of the Iraqi Merchants Association, Sabah Al-Baghdadi stated that “the reduction decision is correct, but we must benefit from global experiences that preceded us in this field, including the Chinese experience that devalued its currency amidst society’s knowledge and alerted that, and put financial flows to the markets, to prevent any challenges facing the local market. »,
Indicating that« the decision to reduce our reduction came in the manner of shock that left clear repercussions on the local market, and that the market suffers from stagnation and the sale is without profits », calling on the Central Bank of Iraq to adopt a plan to move the local market».
Effctive treatments
Economic specialist Bashir Al-Saadi said: “The economy can be described as a patient who needs diagnosis and analysis, and then treatment is prescribed, and we need a longer time to describe effective treatments that can change the shape of the national economy and move it to a better stage,” pointing out that “several projects In Iraq, including the strategy, it can advance the national economy, and curbing commodity dumping is an imperative ».
Price increase
Academy d. Rabab assured that "the decision to devalue the currency is correct, but what is the benefit of it when it is combined with customs exemptions for some countries, and the decision led to an increase in prices more than the reduction rates. In fact, there are commodities whose price has doubled."
Economic academic Abd al-Rahman al-Mashhadani said: “I stand against the decision as a whole, because control over the borders has not been completed, and we do not have a database of the reality of the Iraqi economy as a whole.” LINK
Parliamentary Energy: The 2021 Budget Required The Ministry Of Finance To Establish Special Funds For "Petrodollars"
Pratha News Agency47 2021-04-14 The Parliamentary Oil and Energy Committee confirmed that the 2021 budget adopted a new mechanism regarding the petro-dollar clause, which includes opening funds and accounts for oil-producing provinces and placing their share of funds away from the Ministry of Finance.
Committee member Sadiq Al-Sulaiti said in a press statement that "the issue of (petrodollars) in all budgets was mentioned that there are dues for oil-producing provinces, as well as provinces that contain refineries as part of the petrodollar allocations, through sums to these provinces within their investment plan."
He added, "What happened during the past years, that this topic was written in the budgets, but not applied, because the Ministry of Finance was citing the lack of financial revenues and the deficit remains in financing" petrodollar "projects.
Al-Sulaiti explained that "the debts of the Ministry of Finance to the southern governorates amounted to more than 25 trillion dinars, according to the" petro-dollar "clause, and this amount has not been paid yet.
And he indicated that "the 2021 budget has put in place a new mechanism that differs from its predecessor, and this mechanism imposed on the Ministry of Finance to establish special funds for" petrodollars ", by opening accounts on a monthly basis from oil revenues deducted from" petrodollars "in order for these projects to be organized by the producing provinces according to their quotas. In production, the amount remains far from the disposal of the Ministry of Finance.
http://burathanews.com/arabic/economic/390345
In The Document ... The Central Bank Decides To Increase The Sale Of The Dollar To Cover The Increasing Demand
Time: 04/14/2021 13:11:12 Read: 2,028 times According to a document seen by {Al Furat News}, "The Central Bank decided to increase cash sales from foreign currencies to a number of bodies with the aim of achieving monetary policy goals and ensuring the stability of the exchange rate." LINK
State Of Law Block: The Continued High Exchange Rate Of The Dollar Confirms The Weakness Of The Monetary Policy Management In The Country
Wednesday 14, April 2021 14:35 | Economical Views: 278 Baghdad / NINA / The Parliamentary State of Law Coalition has confirmed that the rise in the exchange rate of the dollar in the local markets to a new record is a dangerous indicator that confirms the weakness of the monetary policy management in the country and puts many question marks.
The representative of the bloc, Khalaf Abd al-Samad, said in a press statement that "the gap created between the already high exchange rate and its price in the market means more high prices, and as a result more economic difficulties for the poor and middle classes and those with limited incomes." : "The Iraqis today are suffering a lot despite the promises and government programs that they heard."
He added, "The repercussions of the wrong decision to raise the exchange rate and include it in the budget" have been eaten by "a significant price hike," indicating that "
https://ninanews.com/Website/News/Details?key=899035
The Central Bank Decides To Increase Its Sales Of Hard Currency To Four Denominations ... Close
Economie| 01:01 - 04/14/2021 BAGHDAD - Mawazine News publishes (Mawazine News), on Wednesday, the decision of the Central Bank of Iraq to increase its sales of hard currency to four denominations.
The decision stipulated:
“For the purpose of meeting the demands on foreign currencies and for the purpose of achieving the objectives of the monetary policy and ensuring the stability of the exchange rate, it was decided to increase the amount of sales of hard currency to banks and exchange companies of the A, B and C categories.” Ended 29 / A43 https://www.mawazin.net/Details.aspx?jimare=149611
Issue (4624) Was Issued From The Iraqi Newspaper Al-Waqi’a Issued On 5/4/2021
2021-04-14 08:38:00
1- Law on the accession of the Republic of Iraq to the Minamata Convention on Mercury No. 30 of 2020.
2- Resolutions issued by the House of Representatives No. (29) and (30) for the year 2021.
3- Statement No. (1) for the year 2021 issued by the Ministry of Culture, Tourism and Antiquities.
Those wishing to acquire the Iraqi factsheet can refer to the Iraqi investigation department, located in Salhiya / Haifa Street (Ministry of Justice building), and obtain the required number. https://www.moj.gov.iq/view.5547/
Trader Noise And Exchange Rate
Wednesday April 14, 2021 123 Mustafa Mohamed Ibrahim There is an increasing literature in financial economics on price dynamics in markets with heterogeneous agents.
A typical contrast found in this literature is the distinction between noise traders, who use technical trading rules and fundamentalists interested in discounted future expected profits.
Theoretical models of noise trading have been stimulated by empirical evidence, which supports the view that speculation is an important force in the market, and the primary work in the field of noise trading focuses on traders' effects on prices, rather than their behavior, to model investor behavior.
And analyzing the dynamics of the stock market when investors choose to be fundamentalists or pesky traders, we are concerned with chaotic trading in the stock market and the mechanism through which it moves to the foreign exchange market, this involves building bridges between the exchange rate offered in the market is divided, meaning that the agents who choose to They are noise dealers that only exist in the local stock market.
The exchange rates are determined by seasoned investors, who have reasonable expectations, the motivation is that foreign exchange dealers are professionals while many equity investors are relatively uninformed individual agents. To model the exchange rate regime in the stock market, we adjust so that the supply affects the supply. Cash on stock valuations.
The motivation for introducing this link between monetary policy and stock prices comes from the observation that expectations of policy changes by the Federal Reserve could lead to large volatility in the stock market, as the model also allows internal fluctuations in the stock market to influence the prevalence that governs the growth of money supply. .
The result is that internal fluctuations in the stock market create internal fluctuations in the exchange rate, so the noise trader's theory emphasizes the exchange rate by adhering to future exchange rates.
In conclusion, this theory coincides with Iraq's position in the divergence of opinions regarding the stability of the exchange rate, especially after the approval of the 2021 budget on 3/31/2021, which will continue the debate about the stability of the exchange rate, according to the daily sales of the foreign currency sale window in the Central Bank of Iraq.
The exchange rate in the parallel market is at 1480 and 1490 and is expected to rise to 1500 in the event of foreign currency sale window sales, as happened last Wednesday on 3/31/ at $ (3.767.738) million dollars, noting that this amount is only to enhance the bank's balances in Abroad, and there is no cash sale executed by the banks, but it was (0) and the exchange rate sold by the Central Bank of Iraq to the bank was (1460). LINK
The Speaker Of Parliament Admits To Using His Powers To Obstruct The Questioning Of The Minister Of Finance
Pratha News Agency57 2021-04-14 Parliament Speaker Muhammad al-Halbousi admitted, on Wednesday, to obstructing the questioning of Finance Minister Ali Allawi, justifying that for the existence of negotiations with the International Monetary Fund. Suspect
Al-Halbousi said in an interview, "I used my powers to postpone the questioning of the Finance Minister because of negotiations that Iraq was conducting with the International Monetary Fund."
He added, "The frequent interrogations are not considered a criterion for the success of the House of Representatives," noting at the same time that "the Presidency of the Council of Representatives did not impede the questioning of anyone."
Al-Halbousi attributed “the delay in the parliament’s sessions until noon time to the parliament’s preoccupation with reviewing departments and following up on citizens’ affairs.
”He wondered about“ the reason for not objecting to holding cabinet sessions at four in the afternoon, while the parliament sessions are being objected to at one in the afternoon.
http://burathanews.com/arabic/news/390341
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